pixdeluxe
There’s a timeless investor adage that states it’s far better to buy a wonderful business at a fair price than a fair company at a wonderful price. As I see it, this advice is particularly relevant for investors interested in
Rimini Street: The Hot Dog Stand Outside The Michelin-Star Restaurant
Summary
- Rimini Street trades at a cheap valuation, but its lack of revenue growth and ongoing cash burn make it an uninspiring investment.
- The company's business model piggybacks on software giants like SAP and Oracle, exposing it to legal risks and industry shifts toward cloud solutions.
- Despite generating sizable revenue, Rimini operates in the least lucrative segment of the enterprise software market, limiting long-term value creation.
- Given these factors, I rate RMNI stock as a 'Hold'—it's a fair business at a wonderful price but not compelling for long-term investors.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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